Boeing Financial Ratios

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Financial Ratio Paper: The Boeing Company Andrew C. Moore Slippery Rock University INDEX · Certification of Authorship · Cover Page · Index · Executive Summary · Body · Conclusions and Recommendations · Works Cited EXECUTIVE SUMMARY BOEING The Boeing company was founded in 1916 based in Chicago, IL. Boeing is the largest aerospace company and leading manufacturer of commercial jetliners and defense, space and security systems. Because Boeing has too many segments, each with its own financials, the scope of this report will focus on the company…show more content…
This was reflected also by the times interest earned ratio, which indicated that Boeing is an attractive investment. Profitability Year 2011 2012 2013 2014 Gross Margin Percentage 18.72% 15.95% 15.42% 15.44% Boeing been able to support a steady rate of margin percentage over the last three years. By doing so Boeing has shown that it is making a consistent profit as global economic conditions change from year to year. The gross margin shows to potential investors and current stockholders that Boeing is a steady, reliable company. Year 2011 2012 2013 2014 Earnings per Share $ 5.39 $ 5.15 $ 6.03 $ 7.49 Key to potential investors and current stockholders alike is the Boeing's earnings per share. Unlike the gross margin percentage, the earnings per share of Boeing is on a steady rise. Although consistency is good, an increase in earnings per share is better. Boeing has been able to steadily increase its earnings over the previous years despite a decreasing acid-test ratio and a fluctuating total asset turnover ratio. Year 2011 2012 2013…show more content…
The last two years Boeing has had an increase in it's net profit margin. Showing that not only is Boeing continuing to be profitable, but that it's profitability is rising. This is also why we see an increase in the earnings per share. Year 2011 2012 2013 2014 Book Value per Share $ 4.72 $ 7.76 $ 19.90 $ 12.26 Although not typically considered by investors, The book value of Boeing is worth noting. The book value reflects what would be paid out to stockholders should Boeing need to sell off it's assets and pay its creditors. However, sense Boeing is an industry leader with its market value significantly higher than its book value, Boeing has time and potential to further increase it's book value. It is worth noting that the book value has been increasing between 2011 and 2013 with only slight decrease at the end of 2014. Year 2011 2012 2013 2014 Return on Total Assets 59% 49% 54% 59% Finally the return on total assets shows that Boeing is consistently able to turn it's assets into profit. Comparing return on total assets with net profit percentage we see that Boeing continues to be a profitable company. With over half of Boeing's assets turning a profit, we will expect to see the profit margin to increase along with the earnings per

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